# LOréal (OR.PA)

Canonical: https://gigainvestors.com/s/OR.PA

Analysis as of: 2026-10-16T07:33:32.245Z. Financial observations: FY1998–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 406.85 per share; close as of 2026-10-15.

Estimated value: low EUR 171.40 per share, central EUR 229.23 per share, high EUR 267.59 per share. Buy at or below the central value EUR 229.23 per share. Valuation as of 2026-10-16T07:33:32.245Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.04×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.18×

- FY2018: 0.18×

- FY2019: 0.19×

- FY2020: 0.19×

- FY2021: 0.19×

- FY2022: 0.19×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.20×

### moat: pass

- ROIC, median of available years: 27.2%

- ROIC, second-lowest year: 22.1%

- Typical minus recent gross margin: -1.1 pp

- Typical gross margin (annual median): 73.0%

- Recent gross margin (lower of latest and 3-year median): 74.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 16.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.3%

- FY2017: 26.9%

- FY2018: 25.4%

- FY2019: 22.1%

- FY2020: 26.6%

- FY2021: 29.1%

- FY2022: 30.3%

- FY2023: 31.0%

- FY2024: 27.4%

- FY2025: 28.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 30B

- Net income, five-year total: EUR 29B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -0.9 pp

- Working capital / revenue, final three-year average: 8.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.17×

- FY2022: 1.07×

- FY2023: 0.99×

- FY2024: 0.95×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 25.4% vs 28.5%

- Per-share earnings: 5.83 to 11.52 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.5%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: EUR 98B

- Cumulative retained earnings: EUR 7.2B

- Diluted shares, 10-year annual growth: -0.5%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: EUR 5.69

- Per-share value, starting three-year median: EUR 5.83

- Per-share value, ending three-year median: EUR 11.52

- Buybacks concentrated in cheaper years (correlation): -0.30

- Average buyback yield: 0.8%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 9.0B

- Cumulative net income, 10 years: EUR 47B

- ROIC, first three-year median: 25.4%

- ROIC, last three-year median: 28.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 5.50

- FY2017: EUR 6.35

- FY2018: EUR 6.92

- FY2019: EUR 6.67

- FY2020: EUR 6.34

- FY2021: EUR 8.24

- FY2022: EUR 10.61

- FY2023: EUR 11.52

- FY2024: EUR 11.96

- FY2025: EUR 11.44

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.56×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.5%

- FY2017: -4.6%

- FY2018: -3.6%

- FY2019: -5.7%

- FY2020: -6.6%

- FY2021: -5.0%

- FY2022: -1.2%

- FY2023: -2.7%

- FY2024: -3.3%

- FY2025: -4.1%

## Holders

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 12.8% a year for ten years · "L’Oréal shares fall as full-year sales miss expectations" (finance.yahoo.com, Feb 2026) · sales +1.3%

Story as of 2026-10-16T09:59:56.598Z; price observation 2026-10-15.

Price needs cash profits to grow 12.8% a year for ten years

- 2025-04-17: L’Oreal Sales Rise as Europe Growth Offsets U.S. Weakness ([finance.yahoo.com](https://finance.yahoo.com/m/10f15c9d-8bc0-3cf2-9da3-afc972791c84/l%E2%80%99oreal-sales-rise-as-europe.html))

- 2025-07-29: L’Oréal Q2 Organic Sales Rise 2.4%, Bolstered by Professional Products, Emerging Markets and China ([finance.yahoo.com](https://finance.yahoo.com/news/l-al-q2-organic-sales-160616067.html))

- 2026-02-12: L’Oréal shares fall as full-year sales miss expectations ([finance.yahoo.com](https://finance.yahoo.com/news/l-al-shares-fall-full-180632566.html))

- 2026-04-23: L'Oréal Q1 2026 sales beat expectations, stock jumps 9% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/lor-al-q1-2026-sales-135312240.html))

### Sales · FY2024–2025

sales +1.3%; source https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml; observed 2026-03-24.

- FY2016: EUR 25B 

- FY2017: EUR 26B 

- FY2018: EUR 27B 

- FY2019: EUR 30B 

- FY2020: EUR 28B 

- FY2021: EUR 32B 

- FY2022: EUR 38B 

- FY2023: EUR 41B 

- FY2024: EUR 43B 

- FY2025: EUR 44B 

### Gross margin · FY2025

gross margin 74.3%; source https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml; observed 2026-03-24.

- FY2016: 71.6% 

- FY2017: 71.7% 

- FY2018: 72.8% 

- FY2019: 73.0% 

- FY2020: 73.1% 

- FY2021: 73.9% 

- FY2022: 72.4% 

- FY2023: 73.9% 

- FY2024: 74.2% 

- FY2025: 74.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are EUR 44.1 billion.

- Source: https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml (filed 2026-03-24); FY2025: revenue 44052000000; grossProfit 32738600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OR.PA: L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men in Europe, North America, North Asia, South Asia Pacific, the Middle East, North Africa, Sub-Saharan Africa, and Latin America. It operates through four divisions: Professional Products, Consumer Products, Luxe, and Dermatological Beauty. The company offers skincare, make-up, hair colourant, haircare, perfume, and hygiene products. It provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Niely, L'Oréal Professionnel, Kérastase, Redken, Matrix, Pureology, Lancôme, Yves Saint Laurent Beauté, Armani Beauty, Kiehl's, Helena Rubinstein, Aesop, Biotherm, Valentino, Prada, Shu Uemura, IT Cosmetics, Mugler, Ralph Lauren, Urban Decay, Azzaro, Maison Margiela, Viktor&Rolf, Takami, La RochePosay, CeraVe, Vichy, SkinCeuticals, Skinbetter Science, and other brand names. The company sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.

### Why customers stay

Margins ranged from 73.9% to 74.3% during 2023–25; it earns 27.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: grossProfit / revenue = 73.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: grossProfit / revenue = 74.2%.

- Source: https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml (filed 2026-03-24); FY2025: grossProfit / revenue = 74.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); 10-year return on capital observations [[2016,0.21302294186463205],[2017,0.2694140775541175],[2018,0.25434048664415676],[2019,0.22104407030357526],[2020,0.2661832288609515],[2021,0.29129396756191334],[2022,0.30257701765818473],[2023,0.3097178829630669],[2024,0.27358861366468895],[2025,0.2849180966644952]]; median 0.2715013456094032. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 72% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml (filed 2026-03-24); Gross margin observations: [[2021,0.7388068484495596],[2022,0.7235432795094693],[2023,0.7385539974503733]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 501.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2016: growth capex 87392153.45642424; upkeep 1247507846.5435758; owner earnings 2843592153.456424. Growth capex / owner earnings = 0.030733012591203666.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2017: growth capex 115900000; upkeep 1147600000; owner earnings 3581400000. Growth capex / owner earnings = 0.032361646283576254.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2018: growth capex 128299297.83371711; upkeep 1287800702.166283; owner earnings 3702899297.8337173. Growth capex / owner earnings = 0.03464833567274573.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2019: growth capex 0; upkeep 1231000000; owner earnings 3715120000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2020: growth capex 0; upkeep 972400000; owner earnings 4437580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2021: growth capex 0; upkeep 1075200000; owner earnings 5400100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2022: growth capex 0; upkeep 1343200000; owner earnings 6106400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: growth capex 0; upkeep 1488700000; owner earnings 6131500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: growth capex 55000000; upkeep 1586700000; owner earnings 6117100000. Growth capex / owner earnings = 0.008991188635137565.

- Source: https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml (filed 2026-03-24); FY2025: growth capex 0; upkeep 1495300000; owner earnings 6089820000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Dividend observations: [[2016,1832900000],[2017,1870700000],[2018,2061400000],[2019,2221100000],[2020,2190600000],[2021,2352100000],[2022,2689900000],[2023,3425600000],[2024,3614900000],[2025,3917000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml (filed 2026-03-24); FY2025: cash repurchases 501500000 EUR.

### Are managers owners

Insiders own 57.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OR.PA SharesStats.PercentInsiders = 57.228 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.8% yearly over ten years; actual growth was 6.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Ten-year compound average after fade. Initial solved rate 0.23028964030860416. Price 406.85; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.829007186115458 → FY2025 11.3665243164952. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 163.05 per share

- 2016-11: EUR 161.05 per share

- 2016-12: EUR 173.40 per share

- 2017-01: EUR 168.35 per share

- 2017-02: EUR 175.55 per share

- 2017-03: EUR 180.15 per share

- 2017-04: EUR 182.85 per share

- 2017-05: EUR 190.45 per share

- 2017-06: EUR 182.40 per share

- 2017-07: EUR 175.10 per share

- 2017-08: EUR 177.35 per share

- 2017-09: EUR 179.90 per share

- 2017-10: EUR 191.05 per share

- 2017-11: EUR 185.80 per share

- 2017-12: EUR 184.95 per share

- 2018-01: EUR 183.10 per share

- 2018-02: EUR 177.05 per share

- 2018-03: EUR 183.35 per share

- 2018-04: EUR 198.85 per share

- 2018-05: EUR 205.60 per share

- 2018-06: EUR 211.50 per share

- 2018-07: EUR 209.50 per share

- 2018-08: EUR 206.70 per share

- 2018-09: EUR 207.70 per share

- 2018-10: EUR 198.90 per share

- 2018-11: EUR 207.90 per share

- 2018-12: EUR 201.20 per share

- 2019-01: EUR 210.10 per share

- 2019-02: EUR 221.90 per share

- 2019-03: EUR 239.80 per share

- 2019-04: EUR 245.10 per share

- 2019-05: EUR 240.40 per share

- 2019-06: EUR 250.50 per share

- 2019-07: EUR 242.00 per share

- 2019-08: EUR 248.60 per share

- 2019-09: EUR 256.90 per share

- 2019-10: EUR 261.80 per share

- 2019-11: EUR 258.70 per share

- 2019-12: EUR 264.00 per share

- 2020-01: EUR 251.90 per share

- 2020-02: EUR 241.00 per share

- 2020-03: EUR 238.90 per share

- 2020-04: EUR 265.30 per share

- 2020-05: EUR 261.90 per share

- 2020-06: EUR 285.70 per share

- 2020-07: EUR 283.00 per share

- 2020-08: EUR 276.90 per share

- 2020-09: EUR 277.60 per share

- 2020-10: EUR 277.70 per share

- 2020-11: EUR 306.80 per share

- 2020-12: EUR 310.80 per share

- 2021-01: EUR 290.10 per share

- 2021-02: EUR 302.80 per share

- 2021-03: EUR 326.80 per share

- 2021-04: EUR 341.65 per share

- 2021-05: EUR 368.30 per share

- 2021-06: EUR 375.80 per share

- 2021-07: EUR 385.90 per share

- 2021-08: EUR 396.30 per share

- 2021-09: EUR 356.85 per share

- 2021-10: EUR 394.95 per share

- 2021-11: EUR 397.50 per share

- 2021-12: EUR 416.95 per share

- 2022-01: EUR 376.85 per share

- 2022-02: EUR 355.00 per share

- 2022-03: EUR 363.85 per share

- 2022-04: EUR 348.90 per share

- 2022-05: EUR 328.55 per share

- 2022-06: EUR 329.30 per share

- 2022-07: EUR 368.10 per share

- 2022-08: EUR 343.25 per share

- 2022-09: EUR 330.25 per share

- 2022-10: EUR 318.10 per share

- 2022-11: EUR 354.80 per share

- 2022-12: EUR 333.60 per share

- 2023-01: EUR 378.05 per share

- 2023-02: EUR 375.10 per share

- 2023-03: EUR 411.25 per share

- 2023-04: EUR 432.75 per share

- 2023-05: EUR 399.00 per share

- 2023-06: EUR 427.10 per share

- 2023-07: EUR 423.20 per share

- 2023-08: EUR 405.80 per share

- 2023-09: EUR 393.20 per share

- 2023-10: EUR 396.15 per share

- 2023-11: EUR 431.05 per share

- 2023-12: EUR 450.65 per share

- 2024-01: EUR 444.70 per share

- 2024-02: EUR 441.70 per share

- 2024-03: EUR 438.65 per share

- 2024-04: EUR 439.65 per share

- 2024-05: EUR 452.10 per share

- 2024-06: EUR 410.05 per share

- 2024-07: EUR 400.65 per share

- 2024-08: EUR 396.60 per share

- 2024-09: EUR 402.05 per share

- 2024-10: EUR 344.25 per share

- 2024-11: EUR 328.65 per share

- 2024-12: EUR 341.85 per share

- 2025-01: EUR 358.50 per share

- 2025-02: EUR 353.00 per share

- 2025-03: EUR 342.85 per share

- 2025-04: EUR 387.00 per share

- 2025-05: EUR 372.40 per share

- 2025-06: EUR 363.10 per share

- 2025-07: EUR 389.35 per share

- 2025-08: EUR 397.90 per share

- 2025-09: EUR 368.50 per share

- 2025-10: EUR 362.65 per share

- 2025-11: EUR 375.60 per share

- 2025-12: EUR 366.60 per share

- 2026-01: EUR 387.00 per share

- 2026-02: EUR 397.40 per share

- 2026-03: EUR 349.35 per share

- 2026-04: EUR 366.05 per share

- 2026-05: EUR 382.55 per share

- 2026-06: EUR 383.65 per share

- 2026-07: EUR 386.95 per share

- 2026-08: EUR 384.70 per share

- 2026-09: EUR 379.45 per share

- 2026-10: EUR 387.15 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 68.92 per share, central EUR 84.03 per share, high EUR 97.60 per share

- FY2017: low EUR 77.88 per share, central EUR 94.21 per share, high EUR 109.09 per share

- FY2018: low EUR 84.08 per share, central EUR 102.63 per share, high EUR 118.70 per share

- FY2019: low EUR 96.69 per share, central EUR 121.61 per share, high EUR 140.70 per share

- FY2020: low EUR 85.25 per share, central EUR 95.56 per share, high EUR 109.30 per share

- FY2021: low EUR 90.81 per share, central EUR 102.82 per share, high EUR 118.81 per share

- FY2022: low EUR 155.36 per share, central EUR 208.97 per share, high EUR 244.30 per share

- FY2023: low EUR 169.12 per share, central EUR 224.87 per share, high EUR 262.34 per share

- FY2024: low EUR 168.72 per share, central EUR 212.40 per share, high EUR 247.25 per share

- FY2025: low EUR 181.26 per share, central EUR 238.75 per share, high EUR 276.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/529900JI1GG6F7RKVI53/2025-12-31/ESEF/FR/0/loreal-2025-12-31-1-fr/reports/loreal-2025-12-31-1-fr.xhtml); period 2025-12-31, filed 2026-03-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.